Is Blue Bird Corp. overvalued or undervalued?

As of 16 June 2025, Blue Bird Corp. has moved from a fair to an attractive valuation grade, indicating a shift in its perceived value. The company is currently considered undervalued based on its financial ratios. The P/E ratio stands at 13, which is lower than the industry average of approximately 12.89 for its peers, such as REV Group, Inc. with a P/E of 15.71. Additionally, Blue Bird Corp. boasts a PEG ratio of 0.37, suggesting strong growth potential relative to its price.
In terms of profitability, Blue Bird Corp. has impressive returns, with a ROCE of 86.49% and a ROE of 56.80%. The EV to EBITDA ratio of 8.92 further supports the argument for undervaluation when compared to the industry average. Despite a challenging year with a 20.33% decline in stock price over the past year, the company has shown resilience with a 314.30% return over three years, outperforming the S&P 500's 58.74% during the same period. This combination of strong financial metrics and favorable peer comparisons reinforces the conclusion that Blue Bird Corp. is undervalued.